<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM 10-Q
------------------
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended December 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
Commission file number 1-6903
TRINITY INDUSTRIES, INC.
(Exact name of Company as specified in its charter)
Incorporated Under the Laws 75-0225040
of the State of Delaware ----------------
(I.R.S. Employer
Identification No.)
2525 Stemmons Freeway
Dallas, Texas 75207-2401
------------- ----------
(Address of Principal (Zip Code)
Executive Offices)
(214) 631-4420
---------------------------
(Company's Telephone Number,
Including Area Code)
Indicate by check mark whether the Company (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
--- ---
39,244,987
(Number of shares of common stock outstanding as of December 31, 1999)
<PAGE> 2
Part I
Item 1 - Financial Statements
Trinity Industries, Inc.
Consolidated Balance Sheet
(in millions except per share data)
<TABLE>
<CAPTION>
December 31 March 31
Assets 1999 1999
------ ---------- --------
(unaudited)
<S> <C> <C>
Cash and equivalents . . . . . . . . . . . . . $ 9.4 $ 13.5
Receivables . . . . . . . . . . . . . . . . . 336.9 357.4
Inventories:
Raw materials and supplies . . . . . . . . 303.8 279.5
Work in process . . . . . . . . . . . . . . 39.8 42.5
Finished goods . . . . . . . . . . . . . . 19.5 75.1
-------- --------
363.1 397.1
Property, plant and equipment, at cost . . . 1,255.8 1,213.6
Less accumulated depreciation . . . . . . . . (514.4) (481.3)
-------- --------
741.4 732.3
Other assets . . . . . . . . . . . . . . . . 189.2 184.6
-------- --------
$1,640.0 $1,684.9
======== ========
Liabilities and Stockholders' Equity
Short-term debt . . . . . . . . . . . . . . . $ 200.0 $ 181.0
Accounts payable and accrued liabilities . . 265.8 366.7
Long-term debt . . . . . . . . . . . . . . . 94.1 120.6
Deferred income taxes . . . . . . . . . . . . 38.3 34.0
Other liabilities . . . . . . . . . . . . . . 34.5 23.5
-------- --------
632.7 725.8
-------- --------
Stockholders' equity:
Common stock - par value $1 per share;
authorized 100.0 shares; shares issued
and outstanding at December 31, 1999
- 43.7; at March 31, 1999 - 43.7 . . . . 43.7 43.7
Capital in excess of par value . . . . . . 293.5 292.6
Retained earnings . . . . . . . . . . . . . 833.7 722.9
Accumulated other comprehensive income . . (20.1) (20.6)
Treasury stock - (shares held at
December 31, 1999 - 4.5; at March 31,
1999 - 2.4), at cost . . . . . . . . . . (143.5) (79.5)
-------- --------
1007.3 959.1
-------- --------
$1,640.0 $1,684.9
======== ========
</TABLE>
2
<PAGE> 3
Trinity Industries, Inc.
Consolidated Income Statement
(unaudited)
(in millions except per share data)
<TABLE>
<CAPTION>
Nine Months
Ended December 31
1999 1998
--------- --------
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . . . . $2,094.2 $2,151.8
Operating costs:
Cost of revenues . . . . . . . . . . . . . . . . . 1,735.4 1,810.6
Selling, engineering and administrative
expenses . . . . . . . . . . . . . . . . . . . . 135.7 122.7
-------- --------
1,871.1 1,933.3
-------- --------
Operating profit . . . . . . . . . . . . . . . . . . 223.1 218.5
Other (income) expense:
Interest income . . . . . . . . . . . . . . . . . (0.9) (3.4)
Interest expense . . . . . . . . . . . . . . . . . 15.8 14.6
Other, net . . . . . . . . . . . . . . . . . . . . (1.4) (23.7)
-------- --------
13.5 (12.5)
-------- --------
Income before income taxes . . . . . . . . . . . . . 209.6 231.0
Provision (benefit) for income taxes:
Current . . . . . . . . . . . . . . . . . . . . . 72.8 93.4
Deferred . . . . . . . . . . . . . . . . . . . . . 5.2 (6.8)
-------- --------
78.0 86.6
Net income . . . . . . . . . . . . . . . . . . . . . $ 131.6 $ 144.4
======== ========
Net income per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . $ 3.31 $ 3.33
======== ========
Diluted . . . . . . . . . . . . . . . . . . . . . $ 3.29 $ 3.30
======== ========
Weighted average number of shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . 39.7 43.3
Diluted . . . . . . . . . . . . . . . . . . . . . 40.0 43.8
</TABLE>
3
<PAGE> 4
Trinity Industries, Inc.
Consolidated Income Statement
(unaudited)
(in millions except per share data)
<TABLE>
<CAPTION>
Three Months
Ended December 31
1999 1998
--------- --------
<S> <C> <C>
Revenues. . . . . . . . . . . . . . . . . . . . . . . $700.8 $ 722.9
Operating costs:
Cost of revenues. . . . . . . . . . . . . . . . . . 586.4 611.4
Selling, engineering and administrative expenses. . 45.6 41.8
------ -------
632.0 653.2
------ -------
Operating profit. . . . . . . . . . . . . . . . . . . 68.8 69.7
Other (income) expense:
Interest income . . . . . . . . . . . . . . . . . . (0.5) (1.4)
Interest expense. . . . . . . . . . . . . . . . . . 5.8 5.4
Other, net . . . . . . . . . . . . . . . . . . . . (0.0) (1.2)
------ -------
5.3 2.8
------ -------
Income before income taxes .......................... 63.5 66.9
Provision (benefit) for income taxes:
Current . . . . . . . . . . . . . . . . . . . . . . 20.6 30.9
Deferred . . . . . . . . . . . . . . . . . . . . . . 2.6 (5.8)
------ -------
23.2 25.1
Net income . . . . . . . . . . . . . . . . . . . . . $ 40.3 $ 41.8
====== =======
Net income per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . . $ 1.03 $ 0.97
====== =======
Diluted . . . . . . . . . . . . . . . . . . . . . . $ 1.02 $ 0.96
====== =======
Weighted average number of shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . 39.3 43.1
Diluted . . . . . . . . . . . . . . . . . . . . . . 39.5 43.6
</TABLE>
4
<PAGE> 5
Trinity Industries, Inc.
Consolidated Statement of Cash Flows
(unaudited)
(in millions)
<TABLE>
<CAPTION>
Nine Months
Ended December 31
1999 1998
--------- --------
<S> <C> <C>
Operating activities:
Net income. . . . . . . . . . . . . . . . . . . . . $ 131.6 $144.4
Adjustments to reconcile net income to net cash
provided (required) by operating activities:
Depreciation and amortization . . . . . . . . . . 59.6 53.2
Provision (benefit) deferred income taxes . . . . 5.2 (6.8)
Gain on sale of property, plant and equipment
and other assets . . . . . . . . . . . . . . . . (6.9) (24.1)
Other . . . . . . . . . . . . . . . . . . . . . . 7.5 5.6
Change in assets and liabilities, net of effects
from acquisitions:
Decrease in receivables. . . . . . . . . . . . . 22.4 74.4
(Increase) decrease in inventories . . . . . . . 36.6 (57.1)
Increase in other assets . . . . . . . . . . . . (1.5) (21.7)
Decrease in accounts payable and
accrued liabilities . . . . . . . . . . . . . . (111.7) (74.8)
Increase in other liabilities. . . . . . . . . . 10.9 4.3
------- ------
Total adjustments . . . . . . . . . . . . . . . 22.1 (47.0)
------- ------
Net cash provided by operating
activities. . . . . . . . . . . . . . . . . . . 153.7 97.4
Investing activities:
Proceeds from sale of property, plant
and equipment and other assets . . . . . . . . . . 53.1 147.2
Capital expenditures. . . . . . . . . . . . . . . . (105.9) (150.6)
Payment for acquisitions, net of cash acquired. . . (12.8) (83.1)
------ ------
Net cash required by
investing activities. . . . . . . . . . . . . . (65.6) (86.5)
Financing activities:
Issuance of common stock. . . . . . . . . . . . . . 0.7 1.6
Repayments of short-term debt . . . . . . . . . . . 19.0 53.0
Stock repurchases . . . . . . . . . . . . . . . . . (64.0) (14.9)
Payments to retire long-term debt . . . . . . . . . (26.3) (26.3)
Dividends paid. . . . . . . . . . . . . . . . . . . (21.6) (22.1)
------ ------
Net cash required by
financing activities. . . . . . . . . . . . . . (92.2) (8.7)
------ ------
Net increase (decrease) in cash and equivalents. . . (4.1) 2.2
Cash and equivalents at beginning of year. . . . . . 13.5 3.1
------ ------
Cash and equivalents at end of period. . . . . . . . $ 9.4 $ 5.3
====== ======
</TABLE>
5
<PAGE> 6
Trinity Industries, Inc.
Consolidated Statement of Stockholders' Equity
(unaudited)
(in millions except share and per share data)
<TABLE>
<CAPTION>
Common Stock
---------------------- Capital Accumulated
Amount in Other Total
Shares $1.00 Excess Compre- Treasury Stock Stock-
(100,000,000) Par of Par Retained hensive --------------------- holders'
(Authorized) Value Value Earnings Income Shares Amount Equity
------------ -------- -------- ---------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at March 31, 1998 43,489,276 $ 43.5 $ 287.7 $ 567.5 $ (11.2) -- -- $ 887.5
Other . . . . . . . . . . . 113,038 0.1 1.7 -- -- -- -- 1.8
Stock repurchases . . . . . -- -- -- -- -- (443,732) (14.9) (14.9)
Net income . . . . . . . . . -- -- -- 144.4 -- -- -- 144.4
Currency translation
Adjustments . . . . . . . -- -- -- -- (5.7) -- -- (5.7)
----------
Comprehensive income . . . . 138.7
Cash dividends
($0.51 per share) . . . . . -- -- -- (22.0) -- -- -- (22.0)
---------- -------- -------- ---------- ---------- --------- --------- ----------
Balance December 31, 1998 43,602,314 $ 43.6 $ 289.4 $ 689.9 (16.9) (443,732) (14.9) $ 991.1
========== ======== ======== ========== ========== ========= ========= ==========
Balance at March 31, 1999 43,705,636 $ 43.7 $ 292.6 $ 722.9 $ (20.6) (2,363,932) $ 79.5 $ 959.1
Other . . . . . . . . . . . 39,998 -- 0.9 -- -- -- -- 0.9
Stock repurchases . . . . . -- -- -- -- -- (2,136,715) (64.0) (64.0)
Net income . . . . . . . . . -- -- -- 131.6 -- -- -- 131.6
Currency translation
Adjustments . . . . . . . -- -- -- -- 0.5 -- -- 0.5
----------
Comprehensive income 132.1
Cash dividends
($0.54 per share) . . . . . -- -- -- (20.8) -- -- -- (20.8)
---------- -------- -------- ---------- ---------- --------- --------- ----------
Balance December 31, 1999 43,745,634 $ 43.7 $ 293.5 $ 833.7 $ (20.1) (4,500,647) $(143.5) $ 1,007.3
========== ======== ======== ========== ========== ========= ========= ==========
</TABLE>
6
<PAGE> 7
Trinity Industries, Inc.
Notes to Consolidated Financial Statements
(unaudited)
December 31, 1999
General
The foregoing consolidated financial statements are unaudited and have been
prepared from the books and records of Trinity Industries, Inc. ("Trinity " or
the "Company "). In the opinion of management, all adjustments, consisting only
of normal and recurring adjustments necessary for a fair presentation of the
financial position of the Company as of December 31, 1999, the results of
operations for the three and nine month periods ended December 31, 1999 and 1998
and cash flows for the nine month periods ended December 31, 1999 and 1998, in
conformity with generally accepted accounting principles, have been made.
Because of seasonal and other factors, the results of operations for the nine
month period ended December 31, 1999 may not be indicative of expected results
of operations for the year ending March 31, 2000. These interim financial
statements and notes are condensed as permitted by the instructions to Form
10-Q, and should be read in conjunction with the audited consolidated financial
statements of the Company incorporated by reference in its Form 10-K for the
year ended March 31, 1999.
Stock Repurchases
In the third quarter of fiscal 2000, the Company completed the purchase of up to
10% of the Company's outstanding common stock by purchasing 198,343 shares at a
cost of $5.6 million. The Company has determined that it may purchase additional
shares from time to time in the open market and in negotiated transactions. In
the third quarter, an additional 15,000 shares at a cost of $0.4 million were
purchased. Purchase of additional shares will be based on market conditions and
other relevant factors.
Contingencies
The Company is involved in various claims and lawsuits incidental to its
business. In the opinion of management, these claims and suits in the aggregate
will not have a material adverse affect on the Company's consolidated financial
statements.
Segments of Business
The Company's operations consist of the following business segments: (1) the
Railcar Group, which manufactures and sells railcars; (2) the Inland Barge
Group, which manufactures barges and related products for inland waterway
services; (3) the Parts & Services Group, which manufactures and sells various
parts to manufacturers of railcars and other industrial products and provides
services such as railcar maintenance, fleet management, and leasing; (4) the
Highway Construction Products Group, which is primarily engaged in the
manufacture of highway guardrail and safety products and girders, beams, and
columns used in the construction
7
<PAGE> 8
of highway and railway bridges; (5) the Concrete & Aggregate Group, composed of
ready-mix concrete and aggregate; and (6) the Industrial Group, which
manufactures and sells containers, weld fittings (tee, elbows, reducers, caps,
and flanges) used in pressure piping systems, and pressure and non-pressure
containers for the storage and transportation of liquefied gases and other
liquid and dry products. Finally, All Other includes transportation services,
the Company's captive insurance company, and other peripheral businesses. The
financial information for the year-to-date and quarter ended December 31, 1999
and 1998 is shown in the tables below.
8
<PAGE> 9
Trinity Industries, Inc.
Segment Information
(unaudited)
(in millions)
Nine months ended December 31, 1999:
<TABLE>
<CAPTION>
Revenues
---------------------------------------------- Operating
Profit
Outside Intersegment Total (Loss)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Railcar Group . . . . . . . . . . . . . . . . $ 1,164.4 $ 5.2 $ 1,169.6 $ 126.3
Inland Barge Group . . . . . . . . . . . . . 154.2 -- 154.2 20.1
Parts & Services Group . . . . . . . . . . . 231.7 97.3 329.0 59.9
Highway Construction Products Group . . . . . 151.4 -- 151.4 28.8
Concrete & Aggregate Group . . . . . . . . . 189.2 -- 189.2 21.4
Industrial Group . . . . . . . . . . . . . . 162.1 0.9 163.0 12.0
All Other . . . . . . . . . . . . . . . . . . 41.2 47.1 88.3 3.3
Eliminations and Corporate Items . . . . . . -- -- (150.5) (48.7)
------------ ------------
Consolidated Total . . . . . . . . . . . . . $ 2,094.2 $ 223.1
============ ============
</TABLE>
Nine months ended December 31, 1998:
<TABLE>
<CAPTION>
Revenues
---------------------------------------------- Operating
Profit
Outside Intersegment Total (Loss)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Railcar Group . . . . . . . . . . . . . . . . $ 1,205.8 $ 4.8 $ 1,210.6 122.0
Inland Barge Group . . . . . . . . . . . . . 150.0 -- 150.0 9.8
Parts & Services Group . . . . . . . . . . . 252.0 112.6 364.6 65.2
Highway Construction Products Group . . . . . 132.0 -- 132.0 23.8
Concrete & Aggregate Group . . . . . . . . 175.4 -- 175.4 19.7
Industrial Group . . . . . . . . . . . . . . 183.4 1.1 184.5 11.9
All Other . . . . . . . . . . . . . . . . . . 53.2 48.1 101.3 8.6
Eliminations and Corporate Items . . . . . . -- -- (166.6) (42.5)
------------ ------------
Consolidated Total . . . . . . . . . . . . . $ 2,151.8 $ 218.5
============ ============
</TABLE>
9
<PAGE> 10
Three months ended December 31, 1999:
<TABLE>
<CAPTION>
Revenues
---------------------------------------------- Operating
Profit
Outside Intersegment Total (Loss)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Railcar Group . . . . . . . . . . . . . . . $ 402.9 $ 1.2 $ 404.1 $ 42.6
Inland Barge Group . . . . . . . . . . . . . 48.4 -- 48.4 6.4
Parts & Services Group . . . . . . . . . . . 74.0 30.6 104.6 16.8
Highway Construction Products Group. . . . . 45.5 -- 45.5 7.8
Concrete & Aggregate Group . . . . . . . . . 60.0 -- 60.0 6.1
Industrial Group . . . . . . . . . . . . . . 55.7 0.4 56.1 4.1
All Other . . . . . . . . . . . . . . . . . 14.3 15.9 30.2 0.9
Eliminations and Corporate Items . . . . . . -- -- (48.1) (15.9)
------------ ------------
Consolidated Total . . . . . . . . . . . . . $ 700.8 $ 68.8
============ ============
</TABLE>
Three months ended December 31, 1998:
<TABLE>
<CAPTION>
Revenues
---------------------------------------------- Operating
Profit
Outside Intersegment Total (Loss)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Railcar Group . . . . . . . . . . . . . . . $ 426.9 $ 1.5 $ 428.4 $ 46.0
Inland Barge Group . . . . . . . . . . . . . 42.3 -- 42.3 2.2
Parts & Services Group . . . . . . . . . . . 92.7 41.0 133.7 21.2
Highway Construction Products Group . . . . 37.6 -- 37.6 5.5
Concrete & Aggregate Group . . . . . . . . . 57.6 -- 57.6 5.0
Industrial Group. . . . . . . . . . . . . . 52.3 0.4 52.7 2.0
All Other . . . . . . . . . . . . . . . . . 13.5 16.7 30.2 2.4
Eliminations and Corporate Items . . . . . . -- -- (59.6) (14.6)
------------ ------------
Consolidated Total . . . . . . . . . . . . . $ 722.9 $ 69.7
============ ============
</TABLE>
10
<PAGE> 11
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations
Nine Months Ended December 31, 1999 Compared to
Nine Months Ended December 31,1998
Revenues for the first nine months of fiscal 2000 decreased to $2,094.2 million
from $2,151.8 million due to a decline in revenues in the Industrial Group
caused by the divestiture of Beaird Industries in June 1998, along with
decreased railcar shipments. Operating profit increased to $223.1 million
compared to $218.5 million primarily due to increased operating profits in the
Railcar Group, Inland Barge Group, and Highway Construction Products Group.
Results from the first nine months of fiscal 1999 include a $22.1 million gain,
primarily from the sale of real estate and other assets. Fiscal 2000 railcar
shipments are expected to decrease approximately 15% from fiscal 1999 levels and
industry estimates indicate that greater declines may occur in fiscal 2001.
Revenues for the Railcar Group decreased to $1,164.4 million from $1,205.8
million while operating profit increased to $126.3 million from $122 million.
Lower revenue is due to decreased railcar shipments as a result of softened
demand. Increased operating profit is a result of cost reductions and
manufacturing efficiencies.
Revenues for the Inland Barge Group were $154.2 million compared to $150
million, while operating profit increased to $20.1 million from $9.8 million.
The improvement in operating profit is due mainly to a change in product mix and
cost reductions.
Total revenues for the Parts & Services Group declined while operating profit
decreased to $59.9 million from $65.2 million primarily due to the softness in
the railcar market, the sale of three railcar repair plants, and decreased sales
of container heads.
Revenues for the Highway Construction Products Group increased 14.7% to $151.4
million from $132 million, while operating profit increased 21% to $28.8 million
from $23.8 million due to increased government spending for transportation
infrastructure improvements.
Revenues for the Concrete & Aggregate Group increased 7.9% to $189.2 million
from $175.4 million, while operating profit increased 8.6% to $21.4 million from
$19.7 million. These increases are due to a strong construction market and
continued acquisitions and expansions.
11
<PAGE> 12
Industrial Group revenues decreased to $162.1 million from $183.4 million while
operating profit increased to $12 million from $11.9 million. The decline in
revenue is primarily due to the sale of Beaird Industries, Inc. in the quarter
ended June 30, 1998.
Three Months Ended December 31, 1999 Compared to
Three Months Ended December 31, 1998
Revenues for the third quarter of fiscal 2000 decreased to $700.8 million from
$722.9 million due to reduced car shipments in the Railcar Group, along with a
decline in revenues in the Parts & Services Group. These decreases were mostly
offset by improved results in the Inland Barge, Highway Construction Products,
Industrial Products, and Concrete & Aggregate Groups. Operating profit decreased
slightly to $68.8 million compared to $69.7 million. Increased operating profits
in the Inland Barge, Highway Construction Products, Industrial and Concrete &
Aggregate Groups, were offset by a decrease in the Railcar and the Parts &
Services Groups.
Revenues for the Railcar Group decreased to $402.9 million from $426.9 million
while operating profit decreased to $42.6 million from $46 million. Lower
revenues and operating profit are a result of softened demand in this segment.
Revenues for the Inland Barge Group increased to $48.4 million from $42.3
million. Operating profit increased to $6.4 million from $2.2 million. The
improvement in operating profit is due mainly to a change in product mix,
increased operating efficiency, and lower material costs.
Total revenues for the Parts & Services Group were $104.6 million compared to
$133.7 million, while operating profit decreased to $16.8 million from $21.2
million. This decrease in revenues and operating profit is primarily due to the
softness in the railcar market and decreased sales of container heads.
Revenues for the Highway Construction Products Group increased to $45.5 million
from $37.6 million, while operating profit increased to $7.8 million from $5.5
million due to increased government spending on transportation improvements.
Revenues for the Concrete & Aggregate Group increased to $60 million from $57.6
million, while operating profit increased to $6.1 million from $5 million due to
increased construction spending.
Industrial Group revenues increased to $55.7 million from $52.3 million while
operating profit increased to $4.1 million from $2 million. The increase in
revenues and operating profit is primarily due to increased LPG tank demand and
improvement in the fittings and flange business.
12
<PAGE> 13
Liquidity & Capital Resources
Net cash provided by operating activities increased to $153.7 million during the
first nine months of fiscal 2000 compared to $97.4 million in the first nine
months of fiscal 1999. Capital expenditures during the first nine months of
fiscal 2000 were approximately $105.9 million of which approximately $31.5
million was for additions to the railcar lease fleet. This compares to $150.6
million of capital expenditures in the first nine months of fiscal 1999 of which
$90 million was for additions to the lease fleet. Expenditures for business
acquisitions were $12.8 million. Proceeds from the sale of property, plant and
equipment and other assets were $53.1 million in the first nine months of fiscal
2000 compared to $147.2 million in fiscal 1999.
In the first nine months of fiscal 2000, the Company repurchased common stock
for $64 million. The Company believes cash provided from operations and cash
available under uncommitted bank lines of credit will be sufficient to meet its
requirements for the next year.
Year 2000 Issue
The Company has completed its Year 2000 remediation and compliance effort. To
date, there have been no major system failures or disruptions, and all systems,
machinery and equipment, as well as third party interfaces are operating as
normal. As of December 1999, the Company has spent approximately $9 million on
compliance efforts. At this time, the Company believes all significant areas
have been addressed, and that the Company is positioned to handle Year 2000
issues, should they arise.
------------------
Any statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, and involve risks and uncertainties. These
forward-looking statements include expectations, beliefs, plans, objectives,
future financial performance, estimates, projections, goals and forecasts.
Potential factors which could cause the Company's actual results of operations
to differ materially from those in the forward-looking statements include market
conditions and demand for the Company's products; competition; technologies;
steel prices; interest rates and capital costs; taxes; unstable governments and
business conditions in emerging economies; and legal, regulatory and
environmental issues. Any forward-looking statement speaks only as of the date
on which such statement is made. The Company undertakes no obligation to update
any forward-looking statement to reflect events or circumstances after the date
on which such statement is made.
13
<PAGE> 14
Part II
Item 1 - Legal Proceedings
In December, 1999, a grand jury sitting in the Western District of Louisiana
returned a two count felony indictment against Trinity Baton Rouge, Inc., a
wholly owned subsidiary of the Company. The indictment charges Trinity Baton
Rouge, Inc. with transporting hazardous waste without a proper manifest to an
unpermitted facility in violation of the Resource Conservation Recovery Act.
Trinity Baton Rouge, Inc. denies all charges in the indictment and is defending
this matter vigorously.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit
Number Description
-------- -----------
27 Financial Data Schedule
(b) No Form 8-K was filed during the quarter.
- -------------------------------------------------------------------------------
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Trinity Industries, Inc.
By: \s\ John M. Lee
--------------------
John M. Lee
Vice President
February 11, 2000
<PAGE> 15
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> DEC-31-1999
<CASH> 9,400
<SECURITIES> 0
<RECEIVABLES> 336,900
<ALLOWANCES> 0
<INVENTORY> 363,100
<CURRENT-ASSETS> 0
<PP&E> 1,255,800
<DEPRECIATION> (514,400)
<TOTAL-ASSETS> 1,640,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 43,700
<OTHER-SE> 963,600
<TOTAL-LIABILITY-AND-EQUITY> 1,640,000
<SALES> 0
<TOTAL-REVENUES> 2,094,200
<CGS> 0
<TOTAL-COSTS> 1,735,400
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,800
<INCOME-PRETAX> 209,600
<INCOME-TAX> 78,000
<INCOME-CONTINUING> 131,600
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 131,600
<EPS-BASIC> 3.31
<EPS-DILUTED> 3.29
</TABLE>
